Document background
The Mutual Severance Agreement (Aufhebungsvertrag) is a crucial document in German employment law, used when both employer and employee agree to terminate their employment relationship by mutual consent. This approach is often preferred over unilateral termination as it provides legal certainty for both parties and can help avoid potential litigation. The agreement is particularly relevant in scenarios such as corporate restructuring, leadership changes, or amicable separations. It must comply with German labor law requirements, including provisions of the German Civil Code (BGB) and various employment regulations. The document typically includes comprehensive terms covering severance payments, benefit arrangements, confidentiality obligations, and mutual releases, while ensuring compliance with tax laws and social security regulations. It's essential to note that such agreements require careful drafting to ensure enforceability under German law and often involve consultation with works councils where they exist.
